Members of the European Parliament just voted to introduce a bitcoin and cryptocurrency regulator

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MEPs voted on the non-binding resolution today (Source: Getty)

Francesca Washtell

Members of the European Parliament (MEPs) have called for the creation of a cryptocurrency watchdog to combat money laundering and terrorism.

The EU Commission should set up a taskforce to monitor virtual currencies, such as bitcoin, to prevent their use in money laundering or terrorist financing, the European parliament said in a non-binding resolution today.

The proposal, set out in a resolution drafted by German social democrat MEP Jakob von Weizsacker, suggests that the taskforce, which would be overseen by the Commission, should build expertise in the underlying technology of virtual currencies.

The watchdog would also be tasked with recommending any further necessary legislation, the proposal outlined.

Blockchain works as a decentralised, secure public ledger of transactions shared by a network of users. As such, it can also be used to store data in other contexts, such as healthcare and other public services.